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Background: A provision to a final UCX rule published in the Federal Register on October 17, 1988, required the SESAs to send, effective November 16, 1988, notices of claims filed and subsequent monetary and nonmonetary determinations to the branches of the military and to individuals separated from the Commissioned Corps of the National Oceanic and Atmospheric Administration (NOAA) and the Coast Guard. SESAs were provided with a list of military addresses via UIPL No. 19-94, Change 7. Subsequently, the U.S. Army has provided a new address for such notices. Action Required: State Administrators should provide the attached list of military addresses to appropriate staff and advise them to immediately discontinue using the list of military liaison addresses provided in UIPL No. 19-94, Change 7.

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References: Chapter IV, ET Handbook No. 384, Second Edition, 20 CFR 614.12 and 5 U.S.C. 8521(a)(2). Instructions: State Employment Security Agencies (SESAs) shall use the attached schedule to determine Federal military wages for UCX "first claims" filed beginning with the first day of the first week which begins after April 4, 1998, pursuant to 20 CFR 614.12. SESAs will continue to use the existing schedule for UCX "first claims" filed before the effective date of the attached revised schedule. As provided by 20 CFR 614.12(d), the attached schedule shall be published as a notice in the Federal Register. Action Required: Administrators should provide the above instructions and the attached revised schedule to appropriate staff.

References: Section 3306(t) of the Federal Unemployment Tax Act (FUTA); North American Free Trade Agreement Implementation Act (NAFTA), P.L. No. 103-182; Unemployment Insurance Program Letter (UIPL) No. 14-94. Background: The NAFTA, P.L. No. 103-182, among other things, amended Federal law to give States the option of permitting certain individuals to receive a SEA payment from the State's unemployment fund for the purpose of assisting such individuals in establishing businesses and becoming self-employed. These SEA payments are authorized only during the 5 years following NAFTA's date of enactment. Since NAFTA was enacted on December 8, 1993, the SEA program provisions were effective on that date and expire on December 8, 1998. See UIPL 14-94, pages 1 and 14. Since at this time there is no legislation pending before Congress that authorizes States to continue operating a SEA program beyond December 8, 1998, we are issuing this UIPL to remind States that their SEA programs must be terminated. Phase-out: 0SEA allowances are payable only for the period for which Federal authorization permits the program to operate, which is prior to December 8, 1998. SEA payments may be issued on and after December 8, 1998, but only with respect to periods of time prior to December 8, 1998. States may phase out the SEA program by establishing a cut-off date prior to December 8, 1998, for enrolling new SEA participants. This would allow the time needed for SEA participants to receive all SEA allowances and participate in all activities and prevent the possibility of some participants not receiving all SEA allowances. Enrolling claimants into a program that will expire before the participants will have the opportunity to receive all allowances or engage in all required activities would likely result in unfavorable reactions from the participants and unwanted publicity. Alternatively, States could provide claimants with the options of either receiving their maximum benefit amount (MBA) under the regular UI program, or participating in the SEA program with the understanding that their MBA will not be payable as SEA allowances. Action: We encourage States to take appropriate action to assure the smooth phase-out of the SEA program. State Administrators are requested to provide this information to appropriate staff.

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Reference: Unemployment Insurance Program Letter (UIPL) No. 3-92. UIPL NO. 37-93, UIPL No. 40-94, UIPL No. 32-95, and UIPL No. 25-96. Background: The referenced UIPLs published the ERI for Rate Years 1988 - 1995. Attachment I shows the ERI by State for Rate Years 1988 - 1996. Attachment II shows the ERI and the individual components involved in the calculations for States for Rate Year 1996 and is a continuation of the series. Attachment III describes how the Experience Rating Index is calculated. Action Required: Please distribute to appropriate staff.

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Average Weekly Benefit Amount (AWBA) Utilization: As required by 20 CFR 625.6, the attached listing sets forth the 50 percent of AWBA computation applicable for major disasters declared during the second quarter of FY 1998, from January 1 through March 31, 1998. Action Required: SESA Administrators are requested to provide this information to appropriate staff and insure that the correct AWBA is utilized in determining the weekly DUA amount.

Reference: Section 3304(a)9(B) of the Internal Revenue Code; 20 CFR 616; ET Handbook No. 399; and UIPL No. 28-97, dated April 24, 1997. Background: Automation of the combined wage claim (CWC) activities between States involve the Request for Wage Transfer (IB4), the Report on Determination of CWC (IB5), and the Statement of Benefits Paid to CWC claimants (IB6). Model Code providing for the electronic exchange of TC-IB4 and TC-IB5 data has previously been provided to the States and these applications are operational. The IB-6 is used by the paying State of a CWC to provide the detail quarterly charges to the transferring State for reimbursement and is the final application needed to complete the automation of CWC activities. As explained in UIPL No. 28-97 dated April 24, 1997, Lockheed Martin Integrated Business Solutions (LMIBS) has developed Model Code to process and transmit the IB-6 data. This application has been pilot tested by the States of Maryland, Minnesota, and Oregon. The test results indicate that the application operates efficiently when reviewing the accuracy of the charges, identifying charges that don't reconcile with the pro rata charge distribution requirements of the IB5, and delivering outgoing and incoming IB6 data. The test States reported a major savings in the amount of staff time necessary to process outgoing and incoming IB-6s because only charges that do not pass the electronic edits need staff attention. Although the Code was completed during the summer of 1997, National distribution was delayed in consideration of the year 2000 requirements. However, since 19 States have requested and received the Code from LMIBS, the IB Committee has recommended distribution of the Code to all States with a requirement that all States be able to electronically send and receive IB6 data no later than the billing cycle for the quarter ending March 31, 1999. Distribution and Installation of the TC-IB6 Model Code: The Model Code will be distributed in February, 1998, to those IBM States that have not previously received it. Simultaneously, the programming specifications will be provided to all non-IBM States that have not previously received them. Because the IB6 data is currently electronically created and printed to paper for mailing, the programming requirements to implement the TC-IB6 should not be extensive. It is estimated that installation and testing of the Model Code will take approximately 40 programmer staff hours. The programming hours reported by the pilot States ranged from 24 to 80 hours. The amount of programming hours necessary is impacted by the degree to which the State has interfaced the TC-IB5 application. The TC-IB6 must be able to access the TC-IB5 base file during the edit and reconciliation process. Implementation - Transition From Paper Form IB6 to Electronic TC-IB6: Effective April 1, 1998, the LMIBS HUB will begin to support the implementation of the TC-IB6 by additional States. States with questions concerning technical requirements, testing, etc., should contact Michelle Wohleber at (407) 306-7133. During the transition period between April 1, 1998 and April 1999 (when all States are to be operational on this application), the CWC paying State that is operational on the TC-IB6 must ensure that it sends a quarterly IB6 in the form (electronic data or hard copy) necessary for processing by the transferring State. The paying State must also be able to handle incoming IB6s prepared under the current hard copy procedures. Action Required: SESA Administrators are requested to ensure that: 1) the TC-IB6 Model Code is installed and operational no later than for the 1st quarter of calendar year 1999 billing cycle; 2) if the State becomes operational on the TC-IB6 during the transition period, the State continues to send quarterly IB6 data in the form necessary for processing by the transferring State; and, 3) the State is able to process incoming IB6s prepared under the current procedures through the billing cycle for the quarter ending December 31, 1998.